| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
RM Stock Overview
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders.
Regional Management Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$50.84 |
| 52 Week High | US$67.60 |
| 52 Week Low | US$26.61 |
| Beta | 1.29 |
| 1 Month Change | -11.12% |
| 3 Month Change | -6.13% |
| 1 Year Change | 64.37% |
| 3 Year Change | 89.00% |
| 5 Year Change | 105.41% |
| Change since IPO | 209.06% |
Recent News & Updates
Shareholder Returns
| RM | US Consumer Finance | US Market | |
|---|---|---|---|
| 7D | -6.6% | -7.2% | -6.1% |
| 1Y | 64.4% | 9.3% | 4.2% |
Return vs Industry: RM exceeded the US Consumer Finance industry which returned 9.3% over the past year.
Return vs Market: RM exceeded the US Market which returned 4.2% over the past year.
Price Volatility
| RM volatility | |
|---|---|
| RM Average Weekly Movement | 5.6% |
| Consumer Finance Industry Average Movement | 7.9% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: RM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: RM's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | 1,542 | Rob Beck | https://www.regionalmanagement.com |
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” in more than 340 branch locations in 13 states across the United States. Most of its loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty.
Regional Management Fundamentals Summary
| RM fundamental statistics | |
|---|---|
| Market Cap | US$503.92m |
| Earnings (TTM) | US$82.26m |
| Revenue (TTM) | US$396.22m |
6.1x
P/E Ratio1.3x
P/S RatioIs RM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RM income statement (TTM) | |
|---|---|
| Revenue | US$396.22m |
| Cost of Revenue | US$82.71m |
| Gross Profit | US$313.51m |
| Expenses | US$231.26m |
| Earnings | US$82.26m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 09, 2022
| Earnings per share (EPS) | 8.30 |
| Gross Margin | 79.13% |
| Net Profit Margin | 20.76% |
| Debt/Equity Ratio | 349.1% |
How did RM perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield11%
Payout RatioValuation
Is Regional Management undervalued compared to its fair value and its price relative to the market?
6.13x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RM ($50.84) is trading above our estimate of fair value ($44.09)
Significantly Below Fair Value: RM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RM's PE Ratio (6.1x) is in line with the US Consumer Finance industry average.
PE vs Market: RM is good value based on its PE Ratio (6.1x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: RM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RM is overvalued based on its PB Ratio (1.8x) compared to the US Consumer Finance industry average (1.4x).
Future Growth
How is Regional Management forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RM's earnings are forecast to decline over the next 3 years (-12.7% per year).
Earnings vs Market: RM's earnings are forecast to decline over the next 3 years (-12.7% per year).
High Growth Earnings: RM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RM's revenue (12.2% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: RM's revenue (12.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RM's Return on Equity is forecast to be low in 3 years time (17.6%).
Past Performance
How has Regional Management performed over the past 5 years?
18.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RM has high quality earnings.
Growing Profit Margin: RM's current net profit margins (20.8%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: RM's earnings have grown by 18.4% per year over the past 5 years.
Accelerating Growth: RM's earnings growth over the past year (193.1%) exceeds its 5-year average (18.4% per year).
Earnings vs Industry: RM earnings growth over the past year (193.1%) exceeded the Consumer Finance industry 122.5%.
Return on Equity
High ROE: Whilst RM's Return on Equity (29.65%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Regional Management's financial position?
Financial Position Analysis
Short Term Liabilities: RM's short term assets ($1.2B) exceed its short term liabilities ($36.1M).
Long Term Liabilities: RM's short term assets ($1.2B) exceed its long term liabilities ($1,000.0M).
Debt to Equity History and Analysis
Debt Level: RM's net debt to equity ratio (345.6%) is considered high.
Reducing Debt: RM's debt to equity ratio has increased from 239.5% to 349.1% over the past 5 years.
Debt Coverage: RM's debt is not well covered by operating cash flow (18.9%).
Interest Coverage: RM's interest payments on its debt are well covered by EBIT (4.3x coverage).
Balance Sheet
Dividend
What is Regional Management current dividend yield, its reliability and sustainability?
1.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RM's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: RM's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.61%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether RM's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if RM's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.3%), RM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RM's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Rob Beck (57 yo)
1.83yrs
Tenure
US$2,800,893
Compensation
Mr. Robert William Beck, also known as Rob, serves as President, Chief Executive Officer and Director at Regional Management Corp. since March 26, 2020 and served as its Executive Vice President and Chief...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD2.80M) is above average for companies of similar size in the US market ($USD1.70M).
Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: RM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: RM's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Regional Management Corp.'s employee growth, exchange listings and data sources
Key Information
- Name: Regional Management Corp.
- Ticker: RM
- Exchange: NYSE
- Founded: 1987
- Industry: Consumer Finance
- Sector: Diversified Financials
- Implied Market Cap: US$503.915m
- Shares outstanding: 9.91m
- Website: https://www.regionalmanagement.com
Number of Employees
Location
- Regional Management Corp.
- 979 Batesville Road
- Suite B
- Greer
- South Carolina
- 29651
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:29 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.